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| Preface: To the Instructor | |
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| Preface: To the Student | |
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| Introduction | |
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| Ten Principles of Economics | |
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| How People Make Decisions | |
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| How People Interact | |
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| How the Economy as a Whole Works | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Thinking Like an Economist | |
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| The Economist as Scientist | |
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| The Economist as Policy Adviser | |
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| Why Economists Disagree | |
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| Let's Get Going | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Graphing: A Brief Review | |
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| Interdependence and the Gains from Trade | |
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| A Parable for the Modern Economy | |
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| Comparative Advantage: The Driving Force of Specialization | |
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| Applications of Comparative Advantage | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| How Markets Work | |
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| The Market Forces of Supply and Demand | |
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| Markets and Competition | |
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| Demand | |
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| Supply | |
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| Supply and Demand Together | |
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| Conclusion: How Prices Allocate Resources | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Elasticity and its Application | |
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| The Elasticity of Demand | |
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| The Elasticity of Supply | |
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| Three Applications of Supply, Demand, and Elasticity | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Supply, Demand, and Government Policies | |
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| Controls on Prices | |
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| Taxes | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Markets and Welfare | |
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| Consumers, Producers, and the Efficiency of Markets | |
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| Consumer Surplus | |
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| Producer Surplus | |
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| Market Efficiency | |
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| Conclusion: Market Efficiency and Market Failure | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Application: The Costs of Taxation | |
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| The Deadweight Loss of Taxation | |
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| The Determinants of the Deadweight Loss | |
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| Deadweight Loss and Tax Revenue as Taxes Vary | |
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| Conclusion | |
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| Summary | |
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| Key Concept | |
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| Questions for Review | |
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| Problems and Applications | |
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| Application: International Trade | |
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| The Determinants of Trade | |
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| The Winners and Losers from Trade | |
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| The Arguments for Restricting Trade | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| The Data of Macroeconomics | |
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| Measuring a Nation's Income | |
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| The Economy's Income and Expenditure | |
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| The Measurement of Gross Domestic Product | |
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| The Components of GDP | |
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| Real versus Nominal GDP | |
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| Is GDP a Good Measure of Economic Well-Being? | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Measuring the Cost of Living | |
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| The Consumer Price Index | |
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| Correcting Economic Variables for the Effects of Inflation | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| The Real Economy in the Long Run | |
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| Production and Growth | |
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| Economic Growth around the World | |
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| Productivity: Its Role and Determinants | |
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| Economic Growth and Public Policy | |
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| Conclusion: The Importance of Long-Run Growth | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Saving, Investment, and the Financial System | |
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| Financial Institutions in the U.S. Economy | |
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| Saving and Investment in the National Income Accounts | |
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| The Market for Loanable Funds | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| The Basic Tools of Finance | |
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| Present Value: Measuring the Time Value of Money | |
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| Managing Risk | |
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| Asset Valuation | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Unemployment | |
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| Identifying Unemployment | |
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| Job Search | |
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| Minimum-Wage Laws | |
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| Unions and Collective Bargaining | |
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| The Theory of Efficiency Wages | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Money and Prices in the Long Run | |
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| The Monetary System | |
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| The Meaning of Money | |
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| The Federal Reserve System | |
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| Banks and the Money Supply | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Money Growth and Inflation | |
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| The Classical Theory of Inflation | |
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| The Costs of Inflation | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| The Macroeconomics of Open Economies | |
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| Open-Economy Macroeconomics: Basic Concepts | |
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| The International Flows of Goods and Capital | |
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| The Prices for International Transactions: Real and Nominal Exchange Rates | |
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| A First Theory of Exchange-Rate Determination: Purchasing-Power Parity | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| A Macroeconomic Theory of the Open Economy | |
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| Supply and Demand for Loanable Funds and for Foreign-Currency Exchange | |
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| Equilibrium in the Open Economy | |
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| How Policies and Events Affect an Open Economy | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Short-Run Economic Fluctuations | |
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| Aggregate Demand and Aggregate Supply | |
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| Three Key Facts about Economic Fluctuations | |
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| Explaining Short-Run Economic Fluctuations | |
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| The Aggregate-Demand Curve | |
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| The Aggregate-Supply Curve | |
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| Two Causes of Economic Fluctuations | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| The Influence of Monetary and Fiscal Policy on Aggregate Demand | |
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| How Monetary Policy Influences Aggregate Demand | |
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| How Fiscal Policy Influences Aggregate Demand | |
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| Using Policy to Stabilize the Economy | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| The Short-Run Trade-Off Between Inflation and Unemployment | |
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| The Phillips Curve | |
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| Shifts in the Phillips Curve: The Role of Expectations | |
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| Shifts in the Phillips Curve: The Role of Supply Shocks | |
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| The Cost of Reducing Inflation | |
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| Conclusion | |
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| Summary | |
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| Key Concepts | |
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| Questions for Review | |
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| Problems and Applications | |
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| Final Thoughts | |
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| Five Debates Over Macroeconomic Policy | |
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| Should Monetary and Fiscal Policymakers Try to Stabilize the Economy? | |
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| Should Monetary Policy Be Made by Rule Rather Than by Discretion? | |
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| Should the Central Bank Aim for Zero Inflation? | |
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| Should the Government Balance Its Budget? | |
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| Should the Tax Laws Be Reformed to Encourage Saving? | |
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| Conclusion | |
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| Summary | |
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| Questions for Review | |
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| Problems and Applications | |
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| Quick Quiz Answers | |
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| Glossary | |
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| Index | |